Canaccord Genuity is the global capital markets group of Canaccord Financial Inc. (CF : TSX | CF. : AIM)

2011 WATCH LIST INCLUDES NES

We provide an overview of the small cap mining sector and our year-end list of
exploration/development/mining companies that we believe could provide above-
average speculative potential in 2011.

NEWSTRIKE CAPITAL INC.
(NES : TSX-V : C$0.69 | NOT RATED)

Wendell Zerb, P. Geol 1.604.643.7485

Adam Melnyk, P. Eng 1.604.643.1655

Shares O/S (M): 82.6
Shares FD (M): 94.0
Working capital (M): C$5.0
Market Cap (M): C$57.0

Website: www.newstrikecapital.com

Newstrike is a gold-silver focused mineral explorer, targeting known and historical mining districts in Mexico, including the
Guerrero gold belt in Guerrero State. Newstrike principals, including CEO, Richard Whittall (formerly at Miranda Mining),
and Gillian Kearvell, VP Exploration, (formerly at Teck Corp.), have extensive experience in the Guerrero mining camp.

• Newstrike is one of the largest holders of mineral claims (88,950 hectares) covering the main trend of the Guerrero
gold belt in Guerrero State, Mexico. The company’s primary focus is the Ana Paula project north of and along trend of
Torex Gold’s (TXG : TSX) Morelos project (which includes the El Limon deposit) and Goldcorp’s Los Filos mine.

Newstrike acquired core mineral claims (3% NSR) at Ana Paula from Goldcorp in June 2010. Newstrike has a 10-year
surface access agreement with the local community and has recently initiated a $3.5 million 5,000 metre drill program
testing “Los Filos” style targets, which were previously tested sparsely in 2005.

• Newstrike is targeting gold mineralization associated with Tertiary aged diorite to granodiorite stocks emplaced in
Cretaceous Morelos Formation carbonate rocks. Gold mineralization occurs largely on the margins of the intrusive
stocks and is related to high temperature metasomatic alteration (skarn) followed by meso- to epithermal alteration.

Prospective diorite to granodiorite stocks are believed to trend northwesterly onto Newstrikes concessions, opening the
potential to outline gold mineralization at Ana Paula.

• Goldcorp is currently mining the Los Filos and El Bermejal deposits as twin open pit-heap leach operations. Annual
production is currently about 250,000 oz/year. The property is located at the Village of Mezcala (230 kilometres south
of Mexico City) and is accessible from Highway 95, a major paved route between Mexico City and Acapulco.

• Torex Gold’s Morelos gold project hosts measured and indicated resources of 28.8 million tonnes grading 3.2 g/t gold,
with an additional 8.7 million tonnes of inferred resources at a grade of 3.2 g/t gold. Combined, the project hosts an in
situ gold resource of 3.85 million ounces of gold (100%). A prefeasibility study was completed by Teck on the Morelos
project in mid-2007. The 2007 study considered two development scenarios: an open-pit operation and a combined open-
pit/underground operation. Capex was estimated at US$300 million under both scenarios. Annual gold production was
estimated at 249,000-264,000 ounces of gold with cash costs ranging from US$248 to US$283/oz over a 9- to 11-year
mine life (depending on the development scenario). Torex has recently outlined a higher-grade zone of 7.45 million
tonnes at 6.79 g/t Au at El Limon, which could be exploitable in an underground mining operation.

• Activity in the area of Los Filos by Goldcorp, Torex (Morelos project) and Cayden Resources (Morelos Sur project) could
provide news flow and speculative comparables for Newstrike over the next 12 months.

• The Lundin family controls about 52% of the outstanding common shares of Newstrike.

December 16th, 2010
Categories: Uncategorized . Author: caliche